Secrets to finding bargain rentals

David Adams

Save money by renting a property a little further away from the inner city. Photo: Craig Sillitoe

Renting in the inner city can be an expensive and more daunting proposition than renting elsewhere.

The median weekly rent for houses in inner Melbourne - which includes all suburbs within 10 kilometres of the CBD - was $522 during November, according to the Real Estate Institute of Victoria. The median weekly rent for units was $380. Both figures were significantly higher than those in the middle and outer suburbs.

So, where are the most affordable rentals to be found in inner Melbourne?

Data from Australian Property Monitors, a Fairfax-owned subsidiary, shows that, when it comes to houses, Maidstone's median weekly rental of $360 was the lowest of any suburb located within 10 kilometres of the city that had more than 50 listings during the six months to the end of December.

Advertisement

Other suburbs with the lowest median weekly rents over the period were also largely in the west or north-west, including Footscray ($368), West Footscray ($370), Kingsville ($383), Niddrie ($390) and Essendon ($400).

The cheapest median weekly rental for units over the same period (in suburbs with more than 50 listings) was in West Footscray ($240), Kingsville ($260), Footscray ($290), Brunswick West ($295) and Flemington ($300).

Scott McElroy, a director of Hocking Stuart, suggests suburbs that are located on the fringe of the 10-kilometre band around the CBD will generally represent better value than those closer in.

''If you're going to rent a two-bedroom apartment in Northcote, you'll probably find you're going to be paying $380 or $400 a week. The same apartment in Fitzroy would be $450 a week, $460 a week,'' he says.

''It's just trying to find that little bit further out, that fringe location where you'll probably find much better value for money.''

Apartments off the beaten track could be more affordable, he says. ''Sometimes there's better value in renting an apartment that hasn't got shops downstairs or services on the doorstep because it's a little bit out of the way,'' he says.

''Developments on the fringe of the busiest strip shopping centres rather than in the middle of the strip shopping centres are probably better value as well.''

Property consultant Peter Rogozik, meanwhile, suggests looking in the inner west - locations such as Footscray, Seddon and Yarraville - for more affordable house rentals.

''In Yarraville you can actually rent a two-bedroom cottage in a good street between $400 [a week] and $450,'' he says. ''That would get you a one-bedroom apartment in other inner areas. The inner west is traditionally the cheaper place to buy and rent in inner Melbourne.''

Meanwhile, Mr Rogozik says greater supply means areas such as Southbank and the CBD offer more affordable apartment options with two-bedroom properties at around $500 a week. Port Melbourne and Richmond are also strong options, as are - again - inner western suburbs such as Yarraville, where a two-bedroom apartment can go for as little as $300 to $350 a week.

South of the city, rental properties (house and units) in St Kilda and Elwood are an ''absolute steal'', says Michael Mikhail, senior property manager at Hayden Real Estate's inner Melbourne office. Landlords are offering discounts of up to $100 a week on some rentals he was managing. He says two-bedroom units in St Kilda or Elwood start at as low as $320.

As well as Southbank, South Melbourne, Prahran and Windsor, Mr Mikhail suggests looking in North Melbourne. ''It's relatively close to the city and you can get a decent place relatively cheap,'' he says, noting larger properties are being offered for $650 a week.

''You put that property in South Yarra, for example, and you're looking in the $800s.''

Always be aware that no matter what the rental is, says Mike Williams, policy and liaison worker at the Tenants Union of Victoria, tenants in cheaper properties still have the same rights as those paying more.

''Tenants should be aware that just because they may be paying a lesser amount, landlords have the same duties to keep the property in good repair.''

CHEAP TRICKS

■Suburbs that have more affordable properties for sale will also generally offer more affordable rentals.

■Look for older-style apartments which may come at a discount to their newer counterparts in the same area.

■Look in suburbs on the outer fringe of the 10-kilometre band, rather than more expensive suburbs closer in.

■Demand for smaller one-bedroom properties in some areas means rentals for two-bedroom apartments may be secured at only a slightly higher price.